Panasonic invests $30 million in electric car maker Tesla

Panasonic Corp. on Wednesday said it has purchased a $30 million stake in electric car maker Tesla Motors Inc. of Palo Alto, expanding on a partnership between the two companies to develop batteries for the electric car market.

Panasonic, based in Osaka, Japan, said it purchased Tesla common stock in a private placement for $21.15 per share.

The two companies announced in January that they would work together to develop modified lithium-ion cells. Tesla now uses Panasonic battery cells in its battery packs.

“Panasonic offers the highest energy-density cells and industry-leading performance with cutting edge Nickel-type cathode technology,” Tesla CEO and co-founder Elon Musk said in a statement. “We believe our partnership with them will enable us to further improve our battery pack while reducing cost.”

Tesla has taken over the old Nummi auto plant in Fremont to produce its Model S electric sedan.